The KCS technical analysis displays a bullish breakout of a descending triangle challenging the 50-day EMA. Will the breakout rally reach $10?

The KCS price action shows a bullish breakout of a descending triangle in the daily chart. Furthermore, the breakout rally challenges the 50-day EMA close to the $9.3 resistance trendline. On the other hand, the higher price rejection in the daily candle reflects a retest possibility which might drop the prices under the trendline. 
<h3>Key Points:</h3>
<ul>
 	<li style="font-weight: 400">The increased bearish influence over the daily candle reflects a high possibility of a bullish failure. </li>
 	<li style="font-weight: 400">A 50-day EMA breakout rally will reach the $10 mark. </li>
 	<li style="font-weight: 400">The intraday trading volume in Kucoin is $2.60 Million.</li>
</ul>
<img class="alignnone" src="https://s3.tradingview.com/snapshots/o/O0aMvpIo.png" alt="KCS Price Chart" width="2047" height="1006" />

Source-<a href="https://www.tradingview.com/x/O0aMvpIo/">Tradingview</a>
<h2>KCS Technical Analysis</h2>
Over the last two months, the KCS price action had maintained a declining trend within the influence of a highly bearish resistance trend line. Moreover, the price action displayed a constant support level at $8.72, resulting in a descending triangle pattern in the daily chart.

However, the recent morning star pattern formed at the $8.72 support level led to a bullish breakout of the resistance trendline with a 3% jump overnight. But the higher price rejection in the daily candle from the 50-day EMA questions breakout rally sustenance above the broken trendline.

Additionally, the intraday trading volume grows to support the higher prices action, which increases the possibility of a bullish failure. Thus, a daily candle closing below the $9 mark will nullify the bullish breakout theory and lead to a bearish trend continuation to the $8.72 support level.

On a contrary note, if the market sentiment improves, leading to a bullish rally above the 50-day EMA. This development could push prices to hit the $10 mark.
<h2>Technical Indicator</h2>
The RSI indicator shows a lateral trend struggling to exceed the halfway line, and the 14-day SMA reflects a weakness in the underlying bullishness. Moreover, the bullish crossover in the MCACD and signal lines is yet to increase the bullish gap.

Therefore, the KCS technical analysis suggests that traders should wait for candle closing above the 50-day EMA to avoid a bearish turnaround.

Resistance levels- $9.3 and $10

Support levels-  $8.72, $8

KCS Technical Analysis: Will Triangle Breakout Surpass This EMA?

The KCS technical analysis displays a bullish breakout of a descending triangle challenging the 50-day EMA. Will the breakout rally reach $10?

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

KCS Technical Analysis: Will Triangle Breakout Surpass This EMA?

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